Understanding the Ins and Outs of Planned Unit Development Coverages

Investing in multifamily properties can be a great way to see a decent profit on your future. Planned units are a popular option these days and finding the perfect luxury community to invest in can help you reach new levels with your endeavors as an entrepreneur. Of course, this journey is not without many obstacles. With this type of arrangement, the units are owned by both the renters and the individual who owns the community. The property managers, however, are responsible for taking out a comprehensive insurance package that covers the residents and their needs.

Who Insures What?

An interesting point to understand about planned unit development coverages is that some costs are covered by the residents themselves. Typically, these packages will take care of individual insurance needs and coverage for the unit. As the property manager, you’ll need to focus more on the paperwork and other administrative errors that can occur. E&O insurance helps to protect you when important info is omitted from an official document. This type of protection will also protect the business owner from any allegations of negligence. Additional points to keep in mind when exploring your insurance options include:

Protect Your Investments

While purchasing real estate can be an amazing way to take advantage of exciting financial opportunities for your future, you need to make sure you are taking the time to go about the process in the right way. Look over your options and discover comprehensive protection.

Knowing How to Cover Gaps in Your Insurance Coverage

Purchasing an insurance policy may bring you peace of mind, but your liability policy may leave expensive gaps or exclusions. There are coverage limits as well, and resolving an incident could exceed what your insurance policy provides. When this happens, an excess liability or umbrella policy could help make up the difference.

Knowing the Difference

Though the terms are sometimes used interchangeably, there are noted differences between excess insurance vs umbrella coverage. With umbrella policies, the insured is given higher liability limits as well as a broad scope of coverage for the policy itself. Umbrella coverage can usually fill in gaps like coverage territory, such as moving from a national scope to a worldwide application. With an excess liability policy, the insured is provided additional coverage beyond the financial limits established by the underlying policy. However, because the financial limits are extended, the policy may be more restrictive when written.

Paying Attention

Either policy you choose, you need to carefully read through to find out inclusions and exclusions. The policies themselves don’t follow a standard format, making it easier for you to overlook a crucial detail or simply assume a situation is covered.

The distinction between the two policies can become blurred, especially when agents are talking to you about the benefits of carrying additional coverage. With this information, you should have a better understanding of what policy will best cover your liabilities.